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Set to report its Q1 results on Thursday, April 20 is AutoNation (AN - Free Report) ) which sports a Zacks Rank #2 (Buy), and its Automotive-Retail and Whole Sales Industry is in the top 8% of over 250 Zacks industries.
AutoNation is the largest automotive retailer in the United States and offers vehicle maintenance and repair services along with retailing new and used vehicles.
As a leader in its space, AutoNation is a prime beneficiary of its industry’s strong business environment at the moment. To that point, AutoNation’s earnings estimate revisions are notably higher over the last quarter. Fiscal 2023 earnings estimates have now risen 5% over the last 90 days with FY24 EPS estimates soaring 15%.
Image Source: Zacks Investment Research
AutoNation’s first-quarter earnings are expected at $5.60 per share, which would be a -3% decline Q1 2022. However, Q1 EPS estimates are also trending higher and have now climbed 9% over the last 60 days.
What also makes AutoNation’s rising EPS estimates intriguing is its price-to-earnings valuation. Trading at $136 per share, AutoNation stock has a forward P/E of just 6.5X which is on par with the industry average and nicely beneath the S&P 500’s 19.2X.
AutoNation stock also trades 63% below its decade high of 17.9X and at a 41% discount to the median of 11X. This supports more upside in AutoNation stock which is already up +27% this year to easily top the S&P 500’s +8% and the Retail/Wholesale-Auto/Truck Markets +15%.
Also set to report its Q1 earnings on April 20 is Badger Meter (BMI - Free Report) ) which sports a Zacks Rank #2 (Buy) as well. Badger Meter’s Instrument-Control Industry is in the top 21% of all Zacks industries.
Badger Meter provides flow measurement, control, and communications solutions for utilities, municipalities, and industrial customers worldwide. Earnings estimate revisions have remained the same for FY23 over the last quarter and are slightly up for FY24.
Still, the company’s bottom line growth is very intriguing at the moment. Badger Meter's earnings are projected to jump 14% this year and rise another 7% in FY24 at $2.75 per share.
Image Source: Zacks Investment Research
First quarter earnings are forecasted to climb 20% at $0.59 per share compared to EPS of $0.49 in Q1 2022. Although Q1 EPS estimates have slightly declined the solid year-over-year growth could lead to more upside in Badger Meter stock.
Trading at $120, shares of BMI have continued to rise over the last six months and are now up +10% YTD to top the benchmark and the Instruments-Control Markets +9%.
Image Source: Zacks Investment Research
Bottom Line
With AutoNation and Badger Meter stock already off to strong starts this year, positive Q1 results and favorable guidance could lead to even more upside. This is quite possible as both companies are expected to benefit from strong business industries at the moment.
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2 Top Rated Stocks to Consider Before Earnings
Going into their first-quarter earnings reports a few top-rated Zacks stocks could continue to add to their strong performance this year.
Here are two such stocks that are beneficiaries of booming industries and now appears to be a good time to buy.
AutoNation (AN - Free Report) )
Set to report its Q1 results on Thursday, April 20 is AutoNation (AN - Free Report) ) which sports a Zacks Rank #2 (Buy), and its Automotive-Retail and Whole Sales Industry is in the top 8% of over 250 Zacks industries.
AutoNation is the largest automotive retailer in the United States and offers vehicle maintenance and repair services along with retailing new and used vehicles.
As a leader in its space, AutoNation is a prime beneficiary of its industry’s strong business environment at the moment. To that point, AutoNation’s earnings estimate revisions are notably higher over the last quarter. Fiscal 2023 earnings estimates have now risen 5% over the last 90 days with FY24 EPS estimates soaring 15%.
Image Source: Zacks Investment Research
AutoNation’s first-quarter earnings are expected at $5.60 per share, which would be a -3% decline Q1 2022. However, Q1 EPS estimates are also trending higher and have now climbed 9% over the last 60 days.
What also makes AutoNation’s rising EPS estimates intriguing is its price-to-earnings valuation. Trading at $136 per share, AutoNation stock has a forward P/E of just 6.5X which is on par with the industry average and nicely beneath the S&P 500’s 19.2X.
AutoNation stock also trades 63% below its decade high of 17.9X and at a 41% discount to the median of 11X. This supports more upside in AutoNation stock which is already up +27% this year to easily top the S&P 500’s +8% and the Retail/Wholesale-Auto/Truck Markets +15%.
Image Source: Zacks Investment Research
Badger Meter (BMI - Free Report) )
Also set to report its Q1 earnings on April 20 is Badger Meter (BMI - Free Report) ) which sports a Zacks Rank #2 (Buy) as well. Badger Meter’s Instrument-Control Industry is in the top 21% of all Zacks industries.
Badger Meter provides flow measurement, control, and communications solutions for utilities, municipalities, and industrial customers worldwide. Earnings estimate revisions have remained the same for FY23 over the last quarter and are slightly up for FY24.
Still, the company’s bottom line growth is very intriguing at the moment. Badger Meter's earnings are projected to jump 14% this year and rise another 7% in FY24 at $2.75 per share.
Image Source: Zacks Investment Research
First quarter earnings are forecasted to climb 20% at $0.59 per share compared to EPS of $0.49 in Q1 2022. Although Q1 EPS estimates have slightly declined the solid year-over-year growth could lead to more upside in Badger Meter stock.
Trading at $120, shares of BMI have continued to rise over the last six months and are now up +10% YTD to top the benchmark and the Instruments-Control Markets +9%.
Image Source: Zacks Investment Research
Bottom Line
With AutoNation and Badger Meter stock already off to strong starts this year, positive Q1 results and favorable guidance could lead to even more upside. This is quite possible as both companies are expected to benefit from strong business industries at the moment.